Recent News
May 12, 2026 — Board rotates audit leadership; Joanne Solomon assumes Audit Committee chair, with Donald Colvin remaining on the board. May 19, 2026 — Company announced a proposed public offering and later priced a sale of common stock. June 23, 2026 — Viavi launched an Ultra Ethernet Transport validation solution aimed at AI data center deployments.
Technical Analysis
ADX at 22.95 indicates an emerging trend; directional structure favors downside because DI− stands at 28.72 and is increasing, while DI+ shows a peak-and-reversal at 14.99, signaling bearish directional pressure that pressures near-term price bias.
MACD sits negative at −2.42 and is decreasing with the MACD below its signal line (signal −1.71), confirming bearish momentum that supports near-term downward bias against the current valuation.
MRO reads −2.89 (negative), indicating price sits below the technical target and implying mean-reversion pressure that could support a counter-trend bounce even while momentum remains bearish.
RSI at 43.61 shows a recent dip-and-reversal, signalling a short-term bounce potential rather than sustained strength; that bounce would likely meet resistance given the broader momentum picture.
Price relationships amplify resistance: close $38.16 lies below the 20‑day average $42.23 and the 50‑day average $48.24, but above the 200‑day average $30.62, implying consolidation between long-term support and shorter-term resistance bands. Price also sits marginally below the 1× Bollinger lower band ($38.56), highlighting volatility and a locally stretched move lower.
Ichimoku levels (Tenkan $42.12, Kijun $46.16, Senkou A $50.70, Senkou B $45.50) place the price beneath the cloud and both conversion/base lines, adding a bearish overlay to near-term price action.
Volume at 7.46M exceeded the 10‑day average 4.66M and roughly matched the 50‑day average 7.41M during the latest session, indicating conviction behind recent moves and validating the technical momentum signals.
Fundamental Analysis
Top-line: total revenue $406,800,000. Year-over-year revenue growth measures 96.40%, while quarter-over-quarter revenue declined 56.74%, showing large sequential normalization after a strong year-over-year comparison.
Profitability: gross margin equals 57.55% and operating margin equals 10.35%, with EBIT margin at 6.64%. EBIT margin sits below the industry peer mean of 15.99% and below the industry peer median of 16.04%, though above the industry peer low. EBITDA equals $57,700,000; EBIT $27,000,000; net income $6,400,000, reflecting thin bottom-line conversion versus gross profit.
Earnings: reported EPS $0.27 versus an estimate of $0.23, producing an EPS surprise of +17.39%, which supported short-term attention to the name but does not alter the heavier leverage and cash-flow picture.
Cash and liquidity: cash $499,000,000 and cash & short‑term investments $500,800,000 provide liquidity buffer; current ratio 1.61 and quick ratio 1.39 show working capital coverage but a declining current ratio QoQ. Operating cash flow turned negative at −$15,200,000 and free cash flow negative at −$32,200,000, producing a free cash flow yield of −0.41%.
Leverage and coverage: total debt $1,136,500,000, net debt $581,800,000, debt-to-EBITDA ~19.7× and debt-to-equity ~1.34, indicating materially elevated leverage relative to operating earnings and limited interest coverage (interest coverage ~2.05×). Those debt metrics amplify valuation risk given the weak cash-flow conversion.
Capital efficiency: asset turnover 0.153 and cash conversion cycle ~101 days (near the industry peer mean ~100.7 days), reflecting slow asset utilization and extended working capital. R&D at $71,000,000 supports product development but depresses near-term free cash flow.
Valuation: price-to-earnings ~126.4× and forward P/E ~102.1×, price-to-book ~9.33× (above the industry peer mean of 7.40 but below the peer high), and a forward PS ~6.95. WMDST values the stock as over-valued given stretched multiples alongside negative free cash flow and high leverage.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-03-31 |
| REPORT DATE: | 2026-04-29 |
| NEXT REPORT DATE: | 2026-07-29 |
| CASH FLOW | Begin Period Cash Flow | $ 776.1 M |
| Operating Cash Flow | $ -15.20 M | |
| Capital Expenditures | $ -5.90 M | |
| Change In Working Capital | $ -114.80 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -264.80 M | |
| End Period Cash Flow | $ 511.3 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 406.8 M | |
| Forward Revenue | $ 1.1 B | |
| COSTS | ||
| Cost Of Revenue | $ 172.7 M | |
| Depreciation | $ 10.3 M | |
| Depreciation and Amortization | $ 30.7 M | |
| Research and Development | $ 71.0 M | |
| Total Operating Expenses | $ 364.7 M | |
| PROFITABILITY | ||
| Gross Profit | $ 234.1 M | |
| EBITDA | $ 57.7 M | |
| EBIT | $ 27.0 M | |
| Operating Income | $ 42.1 M | |
| Interest Income | $ 7.0 M | |
| Interest Expense | $ 13.2 M | |
| Net Interest Income | $ -7.30 M | |
| Income Before Tax | $ 13.8 M | |
| Tax Provision | $ 7.4 M | |
| Tax Rate | 40.0 % | |
| Net Income | $ 6.4 M | |
| Net Income From Continuing Operations | $ 6.4 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.23 | |
| EPS Actual | $ 0.27 | |
| EPS Difference | $ 0.04 | |
| EPS Surprise | 17.391 % | |
| Forward EPS | $ 0.31 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 2.5 B | |
| Intangible Assets | $ 1.1 B | |
| Net Tangible Assets | $ -253.30 M | |
| Total Current Assets | $ 1.1 B | |
| Cash and Short-Term Investments | $ 500.8 M | |
| Cash | $ 499.0 M | |
| Net Receivables | $ 320.3 M | |
| Inventory | $ 147.9 M | |
| Long-Term Investments | $ 21.8 M | |
| LIABILITIES | ||
| Accounts Payable | $ 81.7 M | |
| Short-Term Debt | $ 244.5 M | |
| Total Current Liabilities | $ 652.5 M | |
| Net Debt | $ 581.8 M | |
| Total Debt | $ 1.1 B | |
| Total Liabilities | $ 1.7 B | |
| EQUITY | ||
| Total Equity | $ 846.5 M | |
| Retained Earnings | $ -69.72 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 3.66 | |
| Shares Outstanding | 231.400 M | |
| Revenue Per-Share | $ 1.76 | |
| VALUATION | Market Capitalization | $ 7.9 B |
| Enterprise Value | $ 8.5 B | |
| Enterprise Multiple | 147.908 | |
| Enterprise Multiple QoQ | -86.413 % | |
| Enterprise Multiple YoY | 48.69 % | |
| Enterprise Multiple IPRWA | high: 364.265 VIAV: 147.908 mean: 89.263 median: 79.445 low: -215.509 |
|
| EV/R | 20.979 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.986 | |
| Asset To Liability | 1.503 | |
| Debt To Capital | 0.573 | |
| Debt To Assets | 0.45 | |
| Debt To Assets QoQ | -6.083 % | |
| Debt To Assets YoY | 25.731 % | |
| Debt To Assets IPRWA | high: 0.98 VIAV: 0.45 mean: 0.262 median: 0.238 low: 0.001 |
|
| Debt To Equity | 1.343 | |
| Debt To Equity QoQ | -15.768 % | |
| Debt To Equity YoY | 41.541 % | |
| Debt To Equity IPRWA | high: 2.293 VIAV: 1.343 mean: 0.664 median: 0.447 low: -0.773 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 9.331 | |
| Price To Book QoQ | 94.153 % | |
| Price To Book YoY | 187.971 % | |
| Price To Book IPRWA | high: 12.284 VIAV: 9.331 mean: 7.4 median: 5.875 low: -2.416 |
|
| Price To Earnings (P/E) | 126.422 | |
| Price To Earnings QoQ | 60.512 % | |
| Price To Earnings YoY | 78.353 % | |
| Price To Earnings IPRWA | high: 398.734 median: 131.744 VIAV: 126.422 mean: 122.146 low: -220.021 |
|
| PE/G Ratio | 5.563 | |
| Price To Sales (P/S) | 19.416 | |
| Price To Sales QoQ | 78.833 % | |
| Price To Sales YoY | 134.168 % | |
| Price To Sales IPRWA | high: 99.122 median: 22.531 mean: 20.537 VIAV: 19.416 low: 0.0 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 102.092 | |
| Forward PE/G | 4.492 | |
| Forward P/S | 6.949 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -20.657 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.153 | |
| Asset Turnover Ratio QoQ | 0.901 % | |
| Asset Turnover Ratio YoY | -1.509 % | |
| Asset Turnover Ratio IPRWA | high: 0.534 mean: 0.194 median: 0.189 VIAV: 0.153 low: 0.001 |
|
| Receivables Turnover | 1.345 | |
| Receivables Turnover Ratio QoQ | -4.104 % | |
| Receivables Turnover Ratio YoY | 9.873 % | |
| Receivables Turnover Ratio IPRWA | high: 2.612 mean: 1.44 median: 1.439 VIAV: 1.345 low: 0.528 |
|
| Inventory Turnover | 1.196 | |
| Inventory Turnover Ratio QoQ | 0.0 % | |
| Inventory Turnover Ratio YoY | 0.674 % | |
| Inventory Turnover Ratio IPRWA | high: 2.973 median: 1.202 VIAV: 1.196 mean: 1.072 low: 0.128 |
|
| Days Sales Outstanding (DSO) | 67.843 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 101.135 | |
| Cash Conversion Cycle Days QoQ | -1.58 % | |
| Cash Conversion Cycle Days YoY | -8.27 % | |
| Cash Conversion Cycle Days IPRWA | high: 308.893 VIAV: 101.135 mean: 100.732 median: 82.542 low: -44.852 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.014 | |
| CapEx To Revenue | -0.015 | |
| CapEx To Depreciation | -0.573 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.7 B | |
| Net Invested Capital | $ 1.9 B | |
| Invested Capital | $ 1.9 B | |
| Net Tangible Assets | $ -253.30 M | |
| Net Working Capital | $ 401.2 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.768 | |
| Current Ratio | 1.615 | |
| Current Ratio QoQ | -38.164 % | |
| Current Ratio YoY | 5.293 % | |
| Current Ratio IPRWA | high: 14.867 mean: 2.635 median: 1.885 VIAV: 1.615 low: 0.37 |
|
| Quick Ratio | 1.388 | |
| Quick Ratio QoQ | -40.255 % | |
| Quick Ratio YoY | 5.138 % | |
| Quick Ratio IPRWA | high: 13.913 mean: 2.068 VIAV: 1.388 median: 1.259 low: 0.247 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 19.697 | |
| Cost Of Debt | 1.024 % | |
| Interest Coverage Ratio | 2.045 | |
| Interest Coverage Ratio QoQ | -217.239 % | |
| Interest Coverage Ratio YoY | 39.738 % | |
| Interest Coverage Ratio IPRWA | high: 69.571 mean: 10.857 median: 8.916 VIAV: 2.045 low: -197.838 |
|
| Operating Cash Flow Ratio | -0.023 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 49.765 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -9.0 % | |
| Revenue Growth | 10.154 % | |
| Revenue Growth QoQ | -56.736 % | |
| Revenue Growth YoY | 96.402 % | |
| Revenue Growth IPRWA | high: 20.926 % VIAV: 10.154 % mean: 8.376 % median: 7.186 % low: -56.837 % |
|
| Earnings Growth | 22.727 % | |
| Earnings Growth QoQ | -51.3 % | |
| Earnings Growth YoY | 47.722 % | |
| Earnings Growth IPRWA | high: 207.143 % VIAV: 22.727 % median: 9.278 % mean: 3.984 % low: -186.111 % |
|
| MARGINS | ||
| Gross Margin | 57.547 % | |
| Gross Margin QoQ | 0.912 % | |
| Gross Margin YoY | 1.987 % | |
| Gross Margin IPRWA | high: 99.349 % VIAV: 57.547 % mean: 38.273 % median: 36.748 % low: -36.179 % |
|
| EBIT Margin | 6.637 % | |
| EBIT Margin QoQ | -199.64 % | |
| EBIT Margin YoY | 87.169 % | |
| EBIT Margin IPRWA | high: 212.511 % median: 16.044 % mean: 15.992 % VIAV: 6.637 % low: -337.296 % |
|
| Return On Sales (ROS) | 10.349 % | |
| Return On Sales QoQ | 238.203 % | |
| Return On Sales YoY | 191.85 % | |
| Return On Sales IPRWA | high: 40.821 % mean: 16.386 % median: 15.629 % VIAV: 10.349 % low: -176.472 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -32.20 M | |
| Free Cash Flow Yield | -0.408 % | |
| Free Cash Flow Yield QoQ | -144.348 % | |
| Free Cash Flow Yield YoY | -1071.429 % | |
| Free Cash Flow Yield IPRWA | high: 5.592 % median: 0.483 % mean: 0.243 % VIAV: -0.408 % low: -18.584 % |
|
| Free Cash Growth | -187.263 % | |
| Free Cash Growth QoQ | -392.598 % | |
| Free Cash Growth YoY | 92.539 % | |
| Free Cash Growth IPRWA | high: 300.72 % mean: 5.838 % median: -41.449 % VIAV: -187.263 % low: -399.154 % |
|
| Free Cash To Net Income | -5.031 | |
| Cash Flow Margin | -3.736 % | |
| Cash Flow To Earnings | -2.375 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 0.241 % | |
| Return On Assets QoQ | -112.178 % | |
| Return On Assets YoY | -77.392 % | |
| Return On Assets IPRWA | high: 12.143 % median: 2.381 % mean: 2.216 % VIAV: 0.241 % low: -20.105 % |
|
| Return On Capital Employed (ROCE) | 1.44 % | |
| Return On Equity (ROE) | 0.008 | |
| Return On Equity QoQ | -113.114 % | |
| Return On Equity YoY | -71.749 % | |
| Return On Equity IPRWA | high: 0.162 median: 0.065 mean: 0.051 VIAV: 0.008 low: -0.303 |
|
| DuPont ROE | 0.761 % | |
| Return On Invested Capital (ROIC) | 0.841 % | |
| Return On Invested Capital QoQ | -191.314 % | |
| Return On Invested Capital YoY | 90.271 % | |
| Return On Invested Capital IPRWA | high: 7.857 % median: 3.398 % mean: 2.89 % VIAV: 0.841 % low: -10.75 % |
|